Just a little FYI.

I was able to get this all working way back in the day, but 
lost everything because of a HD format.  Back in that day, I 
asked the forums why the texture didnt appear right in the game, 
blender AND FE.  Morerunes told me it was because the texture gets
flipped horizontally and then rotated 180 degrees. I fixed it by
flipping it and rotating it.
So, that is what the .png is right now, flipped and rotated.
All of this fixed it, but the tex still appeared messed up in
blender...but worked in game.  soo weirddd.

Heres a link to the thread.

http://fabletlcmod.com/forum/index.php?t=msg&th=6530&start=0&